HomeTrust Bancshares, Inc. (HTBI): Business Model Canvas [10-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
HomeTrust Bancshares, Inc. (HTBI) Bundle
HomeTrust Bancshares, Inc. (HTBI) stands out in the financial landscape with a business model that emphasizes community engagement and personalized service. This blog post delves into the intricacies of HTBI's Business Model Canvas, showcasing how they align their key partnerships, activities, and resources to create value for individual consumers and local businesses alike. Explore the strategic components that drive their operations and discover what makes HomeTrust a unique player in the banking sector.
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Key Partnerships
Collaborations with local businesses for community engagement
HomeTrust Bancshares, Inc. actively engages with local businesses to foster community relations and drive mutual growth. These collaborations often include co-hosting events, offering financial literacy programs, and providing sponsorships for community initiatives. For instance, in 2024, HomeTrust partnered with over 50 local businesses across its service areas to promote financial wellness and community development.
Relationships with mortgage brokers for loan origination
The company maintains strategic partnerships with approximately 150 mortgage brokers to enhance its loan origination capabilities. In the nine months ended September 30, 2024, HomeTrust originated $58.3 million worth of residential mortgage loans through these brokers, resulting in gains of $1.1 million. This represents a significant increase compared to $48.7 million in loan originations with gains of $633,000 in the same period of the previous year .
Partnerships with technology providers for banking solutions
HomeTrust Bancshares collaborates with several technology providers to enhance its digital banking solutions. This includes partnerships with fintech companies that provide advanced online banking platforms and mobile applications. As of 2024, the bank has invested over $2 million in upgrading its technological infrastructure, which has improved customer engagement and operational efficiency. The bank's net interest margin stood at 4.00% for the third quarter of 2024, reflecting the benefits of these technological advancements .
| Partnership Type | Number of Partners | Financial Impact (Q3 2024) | Year-on-Year Growth |
|---|---|---|---|
| Local Businesses | 50+ | Community Engagement Initiatives | Ongoing |
| Mortgage Brokers | 150 | $58.3 million in loans originated | 20.6% increase |
| Technology Providers | Multiple | $2 million investment in tech upgrades | Ongoing improvements |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Key Activities
Offering a diverse range of financial products
HomeTrust Bancshares, Inc. provides a variety of financial services, including traditional banking products such as savings accounts, checking accounts, and loans. As of September 30, 2024, total assets were approximately $4.6 billion, reflecting a decrease of $35.3 million from December 31, 2023. The bank's loan portfolio comprises various types of loans, including residential and commercial real estate loans, and consumer loans.
| Financial Product | Portfolio Value (in millions) | Growth Rate (YoY) |
|---|---|---|
| Residential Loans | $3,883.0 | 8.0% |
| Commercial Loans | $561.9 | 5.0% |
| Consumer Loans | $300.0 | 10.0% |
| Total Loans | $4,744.9 | 7.0% |
Managing loan origination and servicing
The loan origination process is a critical activity for HomeTrust, with a focus on efficient processing and servicing of loans. For the nine months ended September 30, 2024, the provision for credit losses amounted to $8.4 million, a decrease of 28% compared to $11.7 million for the same period in 2023. This reduction indicates improved credit quality and effective risk management strategies. Net loan charge-offs totaled $8.9 million for the same period, reflecting a net charge-off rate of 0.42% of average loans.
| Loan Management Metrics | Value |
|---|---|
| Provision for Credit Losses | $8.4 million |
| Net Loan Charge-Offs | $8.9 million |
| Net Charge-Off Rate | 0.42% |
| Nonperforming Assets to Total Assets | 0.64% |
Conducting market analysis for strategic decision-making
HomeTrust Bancshares conducts comprehensive market analysis to inform its strategic decisions. This includes evaluating economic trends, customer needs, and competitive positioning. The bank's net income for the nine months ended September 30, 2024, was $40.6 million, reflecting an 11% increase from $36.6 million in the prior year. The effectiveness of its market analysis is also evident in its efficiency ratio, which improved to 60.17% compared to 61.66% in the previous year.
| Market Analysis Metrics | Value |
|---|---|
| Net Income | $40.6 million |
| Efficiency Ratio | 60.17% |
| Return on Assets (ROA) | 1.22% |
| Return on Equity (ROE) | 10.39% |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Key Resources
Skilled workforce with expertise in banking and finance
HomeTrust Bancshares, Inc. employs a skilled workforce dedicated to delivering quality banking services. As of September 30, 2024, the total number of employees was approximately 500, reflecting a commitment to maintaining a knowledgeable team in banking and finance. Employee benefits, including salaries, amounted to $50.7 million for the nine months ended September 30, 2024, marking a 2% increase from $49.4 million in the prior year.
Strong capital base and liquidity position
As of September 30, 2024, HomeTrust Bancshares reported total assets of $4.6 billion, a decrease of $35.3 million from the previous year. The company’s total liabilities decreased by $75.5 million to $4.1 billion. Stockholders' equity increased to $540 million, reflecting a $40.1 million rise due to net income of $40.6 million during the same period. The bank is classified as 'well capitalized' under regulatory standards, exceeding all capital requirements, with an equity to total assets ratio of 11.64%.
Advanced technology infrastructure for online banking services
HomeTrust Bancshares has invested significantly in technology to enhance its online banking services. The bank's technology expenses for the nine months ended September 30, 2024, totaled approximately $9.4 million, consistent with the previous year. This investment supports the bank's digital transformation efforts and customer service enhancements.
| Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Assets | $4.6 billion | $4.6 billion |
| Total Liabilities | $4.1 billion | $4.2 billion |
| Stockholders' Equity | $540 million | $500 million |
| Employee Count | 500 | 500 |
| Total Employee Benefits | $50.7 million | $49.4 million |
| Technology Expenses | $9.4 million | $9.4 million |
| Equity to Total Assets Ratio | 11.64% | 10.41% |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Value Propositions
Personalized customer service tailored to community needs
HomeTrust Bancshares, Inc. (HTBI) prides itself on delivering personalized customer service that caters to the specific needs of the communities it serves. This approach is reflected in its customer satisfaction ratings, with a reported 89% customer satisfaction rate as of 2024. The bank's commitment to understanding local demographics enables it to offer tailored financial solutions that address unique local challenges.
Competitive mortgage and loan rates
HTBI offers competitive mortgage and loan rates to attract a diverse customer base. As of September 30, 2024, the average interest rate on loans receivable was 6.38%, which is notably competitive in the current market environment. Additionally, the bank reported total interest income from loans of $185.4 million for the nine months ended September 30, 2024, reflecting a 14.1% increase year-over-year. This increase is attributed to both an uptick in loan origination and the rising interest rate environment.
| Loan Type | Average Rate (%) | Total Loans Outstanding ($ Million) | Interest Income ($ Million) |
|---|---|---|---|
| Residential Mortgages | 6.25 | 1,500 | 93.75 |
| Commercial Loans | 6.75 | 900 | 60.75 |
| Home Equity Lines of Credit (HELOCs) | 7.00 | 450 | 31.50 |
| Personal Loans | 7.50 | 150 | 11.25 |
Commitment to community development and local investments
HTBI has a strong commitment to community development, investing significantly in local projects and initiatives. For the nine months ended September 30, 2024, the bank reported $12 million allocated to community development loans. This investment supports local businesses and housing projects, which are crucial for regional economic growth. Furthermore, HTBI's involvement in community initiatives has garnered recognition, with the bank receiving the Community Excellence Award in 2024 for its contributions to local economic development.
As of September 30, 2024, HTBI's total assets stood at $4.43 billion, with a well-capitalized status under regulatory guidelines. This financial strength supports its ongoing community investment efforts and customer service initiatives, reinforcing its position as a community-focused bank.
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Customer Relationships
Building trust through transparent communication
HomeTrust Bancshares, Inc. emphasizes transparent communication as a core aspect of building trust with its customers. The bank operates with a net income of $40.6 million for the nine months ended September 30, 2024, which marks an increase of 11% compared to $36.6 million for the same period in 2023 . This financial stability allows the bank to engage customers confidently, ensuring they feel secure in their financial dealings.
Providing dedicated relationship managers for key clients
HomeTrust Bancshares assigns dedicated relationship managers to key clients, enhancing customer experiences and satisfaction. The bank reported an average return on equity (ROE) of 10.39% for the nine months ended September 30, 2024, down slightly from 10.56% in the same period in 2023, reflecting a consistent commitment to maintaining customer relationships despite market fluctuations . The bank's focus on personalized service is evident in its operational strategies, which prioritize client needs and foster long-term loyalty.
Engaging customers through community events and outreach programs
HomeTrust Bancshares actively engages its customer base through various community events and outreach programs. The total assets of the bank stood at approximately $4.6 billion as of September 30, 2024, illustrating its capacity to invest in community initiatives . This involvement not only enhances brand visibility but also solidifies customer relationships by demonstrating the bank's commitment to social responsibility.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income ($ million) | 13.1 | 12.4 | +5.6% |
| Return on Assets (ROA) | 1.17% | 1.15% | +0.02% |
| Return on Equity (ROE) | 10.39% | 10.56% | -0.17% |
| Total Assets ($ billion) | 4.6 | 4.5 | +2.2% |
| Cash Dividends Declared ($ per share) | 0.11 | 0.10 | +10% |
These metrics highlight the bank's financial health and its ability to maintain strong customer relationships through dedicated service and community engagement. By focusing on transparent communication and personalized interactions, HomeTrust Bancshares fosters a trusting environment that is essential for customer retention and satisfaction.
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Channels
Branch network across targeted regions
HomeTrust Bancshares, Inc. operates over 30 branch locations across targeted regions including North Carolina, South Carolina, East Tennessee, Southwest Virginia, and Georgia, specifically in metropolitan areas such as Asheville, Charlotte, and Greater Atlanta .
Online banking platform for easy access to services
The online banking platform of HomeTrust Bancshares provides customers with convenient access to their accounts, allowing for seamless transactions, bill payments, and fund transfers. The adoption of digital banking services has been significant, with an increase in users as more customers prefer online interactions over traditional banking .
Mobile banking app for on-the-go transactions
The HomeTrust mobile banking app enables customers to perform banking transactions on-the-go. Features include mobile check deposits, balance inquiries, and money transfers. The app is designed to enhance customer experience by providing 24/7 access to banking services, reflecting the company's commitment to digital innovation .
| Channel | Details | Regions Served | Customer Adoption Rate |
|---|---|---|---|
| Branch Network | Over 30 locations | North Carolina, South Carolina, East Tennessee, Southwest Virginia, Georgia | N/A |
| Online Banking Platform | Accessible services, bill payments, fund transfers | All operational regions | Increasing year-over-year |
| Mobile Banking App | Mobile check deposits, balance inquiries, transfers | All operational regions | Growing user base |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Customer Segments
Individual consumers seeking home loans and savings options
HomeTrust Bancshares, Inc. primarily serves individual consumers looking for home loans and savings options. As of September 30, 2024, the company reported a total loan portfolio of approximately $3.88 billion, with home loans representing a significant portion of this amount. The average interest rate on loans was 6.38% for the nine months ended September 30, 2024.
The bank's savings products include traditional savings accounts, money market accounts, and certificates of deposit (CDs). The total interest-bearing deposits amounted to $3.08 billion, with a significant increase in money market accounts reflecting customer preferences for higher-yielding savings options.
Small to medium-sized businesses needing financing solutions
HomeTrust Bancshares also targets small to medium-sized businesses (SMBs) that require financing solutions. As of September 30, 2024, the bank’s commercial loan portfolio was approximately $1.1 billion, which includes loans for equipment financing and real estate. The bank has focused on enhancing its presence in the SMB sector, offering tailored loan products that cater to the unique financial needs of these businesses.
The average interest rate for commercial loans was reported at 6.17%, providing competitive options for businesses looking for financing. Additionally, the bank reported that net charge-offs in the equipment finance portfolio were $5.1 million during the nine months ended September 30, 2024, indicating a focus on managing risk while serving this segment.
Local communities focused on economic growth and development
HomeTrust Bancshares emphasizes its commitment to local communities, focusing on economic growth and development. The bank operates over 30 branches across North Carolina, South Carolina, East Tennessee, Southwest Virginia, and Georgia. As of September 30, 2024, the total assets of HomeTrust Bancshares were approximately $4.6 billion, reflecting its substantial role in local economic development.
The bank has engaged in community-focused initiatives, supporting local businesses and providing financial education. This engagement is further evidenced by the increase in noninterest income, which rose by $1.4 million, or 5.8%, year-over-year. The bank also reported a significant increase in loan income and fees, which rose to $2.01 million for the nine months ended September 30, 2024, compared to $1.91 million in the prior year.
| Customer Segment | Loan Portfolio (in billions) | Total Interest-Bearing Deposits (in billions) | Average Interest Rate |
|---|---|---|---|
| Individual Consumers | $3.88 | $3.08 | 6.38% |
| Small to Medium-Sized Businesses | $1.10 | N/A | 6.17% |
| Local Communities | N/A | N/A | N/A |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Cost Structure
Operational costs associated with branch maintenance
HomeTrust Bancshares incurs significant operational costs related to branch maintenance, which include occupancy expenses. For the nine months ended September 30, 2024, the occupancy expense was approximately $7.3 million, down from $7.6 million for the same period in 2023, reflecting a decrease of 3%.
Employee salaries and benefits for service staff
Salaries and employee benefits represent a substantial portion of HomeTrust's noninterest expenses. For the nine months ended September 30, 2024, these costs totaled $50.7 million, a slight increase from $49.4 million in the previous year, representing a growth of 2%. The breakdown of salaries and benefits for the latest quarter shows:
| Expense Category | Q3 2024 (in thousands) | Q2 2024 (in thousands) |
|---|---|---|
| Salaries and Employee Benefits | 17,082 | 16,608 |
| Occupancy Expense, Net | 2,436 | 2,419 |
| Computer Services | 3,192 | 3,116 |
| Telephone, Postage and Supplies | 547 | 580 |
| Marketing and Advertising | 408 | 606 |
Marketing and advertising expenses to promote products
Marketing and advertising expenses for HomeTrust Bancshares play a critical role in promoting its products. For the nine-month period ending September 30, 2024, these expenses amounted to $1.7 million, a 7% increase from $1.6 million in the prior year. The quarterly data for marketing expenses is as follows:
| Quarter | Marketing Expense (in thousands) |
|---|---|
| Q3 2024 | 408 |
| Q2 2024 | 606 |
HomeTrust Bancshares, Inc. (HTBI) - Business Model: Revenue Streams
Interest income from loans and mortgage products
For the nine months ended September 30, 2024, HomeTrust Bancshares reported interest income from loans totaling $185.4 million, which reflects a yield of 6.38% on average loans receivable of $3.88 billion. The interest income on loans for the three months ended September 30, 2024 was $63.3 million, with an average yield of 6.46%. The overall increase in interest income was attributed to higher average balances and rising interest rates.
Fees from account services and transactions
HomeTrust Bancshares generated $6.8 million in service charges and fees on deposit accounts for the nine months ended September 30, 2024, which is a slight decrease of 2% from $6.9 million in the same period of the previous year. For the most recent quarter (Q3 2024), the service charges amounted to $2.3 million. Additionally, loan income and fees contributed $2.0 million for the nine months ended September 30, 2024, reflecting a 5% increase from $1.9 million in the prior year.
Noninterest income from investments and insurance products
Noninterest income for HomeTrust Bancshares reached $25.2 million for the nine months ended September 30, 2024, an increase of 6% compared to $23.8 million in the same period of the previous year. The components of this noninterest income included:
| Component | Q3 2024 (in thousands) | Q2 2024 (in thousands) | % Change |
|---|---|---|---|
| Service charges and fees on deposit accounts | $2,336 | $2,354 | (1)% |
| Loan income and fees | $684 | $647 | 6% |
| Gain on sale of loans held for sale | $1,900 | $1,828 | 4% |
| Bank Owned Life Insurance (BOLI) income | $828 | $807 | 3% |
| Operating lease income | $1,637 | $1,591 | 3% |
| Other income | $897 | $886 | 1% |
| Total Noninterest Income | $8,282 | $8,113 | 2% |
The gain on the sale of loans held for sale increased due to residential mortgage loans sold during the period, which totaled $21.7 million. The bank's operating lease income rose to $5.1 million for the nine months ended September 30, 2024, reflecting a 13% increase from $4.5 million in the previous year.
Article updated on 8 Nov 2024
Resources:
- HomeTrust Bancshares, Inc. (HTBI) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of HomeTrust Bancshares, Inc. (HTBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View HomeTrust Bancshares, Inc. (HTBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.